Mark Francis McCabe of Roseville, NSW, has been sentenced to four years and three months’ imprisonment with a non-parole period of two years and six months in the Downing Centre District Court today (21 May) for a total of three fraud offences.
According to the Australian Securities and Investments Commission (ASIC), McCabe entered guilty pleas on 13 September 2024 to three offences of “dishonestly obtaining a financial advantage by deception”, contrary to s192E(1)(b) of the Crimes Act 1900 (NSW).
ASIC confirmed a further four offences were considered for sentencing.
An offence of dishonestly obtaining financial advantage by deception under the Crimes Act carries a maximum penalty of 10 years’ imprisonment and/or a fine of $110,000.
It was alleged that between 1 January 2015 and 28 April 2021, McCabe dishonestly gained a financial advantage totalling $940,350 from eight people, with the majority being former clients of Guevara Capital Access and Online Trading Capital, where McCabe was the sole director.
It was found that McCabe made deceptive and dishonest representations to investors (through both aforementioned companies) that he would provide or had provided investors with access to foreign exchange trading accounts on a third-party provided platform, as well as access to “capital” into these accounts in specific amounts.
ASIC further claimed McCabe only provided investors with “test” foreign exchange trading accounts (contrary to what he represented to investors), which were not capable of placing real foreign exchange trades.
As a result, no actual trading took place when investors used these so-called “test” accounts to undertake what they believed to be genuine trading.
ASIC alleged McCabe used these funds for his own benefit, using them to pay for business and personal expenses, including rental payments, private school fees and credit card purchases.
Sarah Court, ASIC deputy chair, said the sentence imposed by the court “demonstrates the seriousness of Mr McCabe’s misconduct and sends a strong signal that will deter others from engaging in similar misconduct”.
Her Honour Justice David characterised the former director’s conduct as “highly deceptive” when handing down the sentence, noting the offences were “more than simply enticing people” and was a “sophisticated scheme that created the illusion of genuine trading”.
Judge David further lambasted McCabe for gaining trust from his victims through reliance on his own reputation and misleading them to “feel their money was safe”.
He was found to have engaged in “a form of psychological bullying” through manipulative and threatening behaviour.
The matter was prosecuted by the Office of the Director of Public Prosecutions (Cth) (CDPP) following ASIC’s referral and investigation.
